RBS To Dispose Loan Portfolio To Deutsche Bank, Apollo Global - Quick Facts

(RTTNews) - Royal Bank of Scotland Group plc (RBS, RBS.L) agreed Thursday to dispose of a portfolio of loans to an entity funded by German lender Deutsche Bank AG (DB) and funds affiliated with Apollo Global Management, LLC. The deal is expected to be completed in September 2015.

The loan disposal is part of the continued reduction of assets in RBS Capital Resolution and is in line with the Bank's plan to strengthen its capital position and reduce higher risk exposures.

The completion of the disposal of loans will see RBS receiving a cash consideration of about 400 million British pounds at current exchange rates. RBS said it will use the proceeds from the disposal for general corporate purposes.

The carrying value of the loans as at December 31, 2014 was about 376 million pounds. The gross assets were about 1.137 billion pounds and the loans generated a loss of about 70 million pounds in the year ended December 31, 2014. The disposal is expected to generate a profit of about 24 million pounds after costs associated with the deal.